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A contract which represents the obligation to buy or sell at a specified date in the future is known as?
option
What is the obligation of contract?
The meaning of obligation of contract is the legal duty of the parties to the contract to live up to the promise they make in contract. Thus mainly emphasis a moral duty on the contractors.
What is a property option?
A financial derivative that represents a contract sold by one party to another party The contract offers the buyer the right, but not the obligation, to buy or sell a security or other financial asset at an agreed-upon price during a certain period of time or on a specific date. It refers to an option to purchase real estate and when recorded in the land records creates an encumbrance until it is released by the parties, extinguished by time or the terms are carried out by a sale.
What is Mutuality of obligation?
Idea that both parties of a contract must be bound for contract to be enforceable
Can you quit a temporary agency job if you signed a contract?
You have a contractual obligation to fulfill the terms of that contract unless you can exercise an option allowing you to quit ; you have a legal obligation to live by .
What is failure to perform or follow through with an obligation?
Breach of contract is a failure to perform or follow through with an obligation. A breach of contract can be grounds for a lawsuit against the guilty party.
What is meant by the term obligation?
The term obligation means an agreement to do something or a sense of duty. For example one could be under obligation of a contract or feel a sense of obligation to look after a friend.
Is it illegal to stop payment on a check for unhappy work?
Yes it is. You might end up gettting a law suit filed against you for breach of contract. You should file a civil lawsuit against the contractor in order to be released from any financial obligation related to the contract.
What is an option based contract?
Provide the holder with a right, but not an obligation to buy or sell an underlying financial instrument, foreign currency, or commodity at an agreed-on price during a specified time period or at a specified date.
What does obligation?
An obligation is something you are bound by duty to do. It could be a legal obligation arising from a contract, in which a person has promised to do a certain thing as a part of the contract. It could be a moral or ethical obligation which could arise as a result of a promise which is not legally binding, or from a relationship. E.g. "You said you'd visit the sick and elderly after church and you have an obligation to follow through." "I feel that, as a friend, I have an obligation to attend her funeral." "It's your obligation to take care of your brother's widow and children."
Why are commodity futures contracts transferable?
Commodity future contracts are transferable (can be bought and sold), to realize a profit or loss, but the obligation in the contract remains valid.
How can I learn about stock options basics?
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction
